Unbiased First of all ' folks remember analysts price targets are arrived by using a mathematical model. That's if all the stars align as mentioned inthe report ' then the price will be X. In many cases the stars don't align and the longs take it in the chin. I'm not trying to scare the longs, but, consider this.
1. The model is broken. What I mean is that buying a drug/company and raising prices is a strategy that's no longer do able. Regulators all over the world are keeping a very close watch.
2. Amdipharm before selling to CXR raised prices of drugs astronomically. Pink eye drug up 14 times. Granted I don't have access to pricing on other drugs ,how many more drugs were priced up before Amdipharm sold the company. Is it possible that CXR overpaid for Amdipharm, that too by getting into debt with a high interest rate.
3. Endo pharma saw its sales tapering off. What about CXR. Reagrdless of who will be the next US President, the entire drug sector could come under intense scrutiny. CXR could also find it difficult to finance future acquisitions because of its cashflow position.
I fully appreciate that MT is in a quiet period and he cannot comment on these concerns. However, the odds are stacked against him.
My intention here is not scare the longs as some hve implied, but making investors aware of the issues surround this company
Good luck to all. Have a great weekend.